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Gold prices rebound from moving average support, climbing back above the $3,300 mark.
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XAU/USD holds steady within a defined bull flag formation.
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Neutral momentum and tight consolidation signal a possible breakout ahead.
Gold prices are hovering above critical technical support levels on Wednesday, as the market searches for a fresh catalyst to break out of the current consolidation phase within a bull flag formation.
After sliding 1.25% on Tuesday, the bearish momentum has stalled. At the time of writing, XAU/USD is trading just above the key psychological threshold of $3,300, with the 20-day Simple Moving Average (SMA) lending additional support around $3,289.
This current zone is technically significant. It not only marks the upper boundary of the bull flag pattern but also coincides with the 23.6% Fibonacci retracement level of the January-to-April rally at $3,290 — reinforcing the importance of this price range as a potential inflection point.
Gold Rebounds Off Support, Pressures Mount Inside Bull Flag Formation
Despite downward pressure, Gold has managed to bounce off support, with bears failing to sustain a move below the Fibonacci level. The descending trendline from the bull flag acts as near-term resistance around $3,320, capping bullish attempts to push higher.
The Relative Strength Index (RSI) has leveled off near the neutral 52 mark, suggesting that directional conviction remains elusive. The next significant move in gold prices will likely depend on whether bulls or bears can overcome their respective zones of restriction.
Gold daily chart
A sustained break below $3,200 would invalidate the current flag structure and expose the 38.2% Fibonacci retracement level at $3,161. Below that, deeper support can be found at $3,057 (50% retracement) and $2,952 (61.8% retracement).
On the upside, a decisive breakout above the descending wedge and a daily close above the $3,350–$3,360 resistance zone would likely attract renewed bullish interest. Such a move could pave the way for a retest of April’s all-time high just below $3,500.
